FOR IMMEDIATE RELEASE
DECEMBER 4, 2023
Zambian mining for the 21st century: First Quantum and Mimosa Resources sign the Kashime Development Agreement
LUSAKA, ZAMBIA – First Quantum Minerals (FQM) and Mimosa Resources (Mimosa) have signed a revised Kashime Development Agreement, a joint commitment to fast tracking the development of their copper project known as Fishtie, in Mkushi. Under the Agreement, mining is envisaged to commence as early as 2026, ramping up to a maximum production of 30 000 tonnes of copper a year by the end of this decade with the raising of a total investment of US$200 million led by local company Mimosa Resources.
FQM and Mimosa first announced an agreement to develop the Fishtie copper project in Central Province in 2012. Since then, substantial technical work has been undertaken demonstrating the deposit is economically viable, with some large initial infrastructure now in place. The Agreement signed provides Mimosa with access to FQM’s vast array of skills and expertise to take the Fishtie project to the next stage of development. The establishment of technical and exploration working groups comprising of teams from both FQM and Mimosa will ensure the transfer of skills and technical knowledge throughout the lifetime of the Agreement. This will support Mimosa, as a Zambian ‘home-grown entity’, to successfully develop and run a world-class, modern mining operation.
Mimosa currently owns 37.5% of Kashime Copper Ltd, which holds the Fishtie Project. The Development Agreement will see Mimosa’s stake grow into a majority 75% share through its completion of a feasibility study and the raising of the necessary financing to take the project to technical completion. Each of these stages is time-bound to ensure the project is developed within a reasonable timeframe.
An additional element of this Agreement is the commitment from FQM to finance and conduct exploration within the wider licence area, outside of the Fishtie Project area. This renewed appetite for exploration is largely due to the more favourable investment climate in Zambia, where the focus is now upon achieving a large increase in long-term copper production, requiring new mines to be discovered and brought into production.
“We are determined that this resource should be developed now that the investment climate in Zambia has improved. We have committed a deep level of organisational support to Mimosa, so that they are able to successfully develop and run Fishtie, and in so doing provide inspiration to other emerging Zambian miners. Mimosa has some very clear commercial objectives that they must meet, and within a timeframe that keeps this project on track. We look forward to working closely together in the months and years to come”, said Dr Godwin Beene, Country Manager of First Quantum Minerals.
“This revised Development Agreement represents a potentially significant transfer of skills and know-how from a major mining multi-national to an emerging Zambian company. In the search for a genuine ‘social licence to operate’, we believe that Zambians need to play a leading role in the country’s future mining development” said Jordan Soko, Executive Chairman of Mimosa Resources. “As such, we believe this will not only be a step forward for the Fishtie project, but also for mining in Zambia more generally. We look forward to working together with our partners at FQM, developing Kashime as a model mining operation, and delivering on the aspirations of the various stakeholders with whom we have maintained close relationships over the past years as we have progressed the project.”
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About Mimosa Resources Limited
Mimosa Resources is a mining and metals development company comprising a group of Zambian mining and business professionals with many years of local and international experience in the base metals and other mineral sectors. In developing its business model, Mimosa intends to create a cadre of Zambian professionals who will become world-class at project identification, financing, development and operations. This is part of a larger vision that anticipates more projects becoming available for joint ventures or acquisition within Zambia, particularly with other Zambian-owned mining entities, and having a project team that can easily be deployed on such projects. Mimosa’s core ethos is to work with and for the benefit of all stakeholders based on the African philosophy of UBUNTU – “I am because we are”.
About First Quantum Minerals Ltd
First Quantum Minerals Ltd is a global metals and mining company producing mainly copper, gold and zinc. The company’s assets are in Zambia, Spain, Mauritania, Australia, Finland, Turkey, Panama, Argentina and Peru.
In 2022, First Quantum globally produced 775,859 tonnes of copper, 283,226 ounces of gold and 21,529 tonnes of nickel.
In Zambia it operates the Kansanshi mine and smelter in Solwezi and the Sentinel mine in Kalumbila. The company is listed on the Toronto Stock Exchange.
http://www.first-quantum.com/